Aberdeen Asset Management plc’s Flag Capital Management has closed a $295 million lower middle market fund, Flag Private Equity VI LP.

The new fund, which is $70 million above the initial target range, is the first PE fund that has closed since Aberdeen completed its acquisition of Flag Capital earlier in 2015. The fund consists of both new and returning public pensions, foundations and endowments. About 20 percent of Flag's portoflio is made through direct equity co-investments, targeting private equity managers in growth, buyouts and turnaround situations in the $100 million to $500 million fund range.

“The lower middle market remains the least efficient segment of the private equity spectrum, with relatively less private capital available to fund a relatively large number of active investment opportunities,” says Aberdeen head of U.S. private equity, Scott Reed.

PE firms have been closing funds in 2015. ADV Partners raised an Asia-focused fund and Accel-KKR recently closed a $1.3 billion buyout fund.